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Assume the Market in the Graph Is in Equilibrium at Demand

Question 143

Multiple Choice

Assume the market in the graph is in equilibrium at demand (D) and supply (S<sub>1</sub>) . If the supply curve shifts to S<sub>2</sub>, and a new equilibrium is reached, producer surplus will: A) increase by $90. B) increase by $120. C) decrease by $20. D) decrease by $30. Assume the market in the graph is in equilibrium at demand (D) and supply (S1) . If the supply curve shifts to S2, and a new equilibrium is reached, producer surplus will:


A) increase by $90.
B) increase by $120.
C) decrease by $20.
D) decrease by $30.

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